WORLDWIDE
INSURANCE TRUST
APRIL 30, 1996
VAN ECK
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WORLDWIDE
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EMERGING
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MARKETS
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FUND
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ANNUAL
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REPORT
[Logo}
VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)
<PAGE>
VAN ECK WORLDWIDE EMERGING MARKETS FUND
---------------------------------------
4-30-96 ANNUAL REPORT/MANAGEMENT DISCUSSION & ANALYSIS
Dear Fellow Shareholder:
Emerging markets were strong in the first four months, led by Eastern Europe
(especially Poland, up 60%). India (up 50%) and Pakistan (up 27%) also saw
considerable strength, as did Indonesia (up 24%) and Malaysia (up 20%). South
Africa, Chile and Israel lagged.
Your Fund caught up with the major emerging market indices, a commendable
performance as it was 100% cash at January 1. Our catch up was due to overweight
positions in Taiwan and Korea, where the monopoly cellular phone company's stock
soared. Stock selection in Brazil and Mexico, where Grupo Carso outperformed
strongly, was positive as well.
Themes in which we are investing include auto insurance in Korea, utilities in
Brazil and consumer goods in Indonesia.
The outlook is positive for emerging markets. Political risk in Russia and India
is high given the strong electoral momentum of the Left. In the rest of Asia,
however, Korea, China and Taiwan look promising, with compelling valuations and
positive monetary environments. Thailand also looks interesting, with interest
rates peaking and set to decline. Latin America in general looks attractive as
well. The Mexican and Argentinian economies are recovering, and privatization in
Brazil is continuing.
Gary Greenberg
Portfolio Manager
Peregrine Asset Management (Hong Kong) Limited
May 14, 1996
TOP TEN HOLDINGS
% of net assets
---------------
Cemig S.A. ADR ...................... 7.99
Telecomunicacoes Brasileiras S.A. ADR 7.25
HM Sampoerna ........................ 6.48
PT Bimantra Citra ................... 5.98
Credicorp Ltd. ...................... 5.02
Grupo Financiero Bancomer S.A. GDR .. 4.82
Korea Electric Power Corp. ADR ...... 4.47
A.F.P. Provida S.A. ADR ............. 3.83
Qingling Motor Co. .................. 3.83
Chilectra S.A. ADR .................. 3.68
Asset Allocation as of April 30, 1996
(% of total assets)
[The following table represents a pie chart in the printed report]
Malaysia 1.1%
Brazil 15.0%
Chile 7.4%
Colombia 2.6%
Hong Kong 3.8%
Indonesia 12.3%
Israel 2.0%
Korea 7.5%
Mexico 4.7%
Peru 4.9%
China 0.3%
Other Assets 11.7%
Taiwan 2.1%
Cash & Equiv. 24.6%
This report must be accompanied or preceded by a Van Eck Worldwide Insurance
Trust Prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. Please read the prospectus before investing.
Van Eck Securities Corporation. 99 Park Avenue, New York, NY 10016
<PAGE>
[The following table represents a chart in the printed report]
VAN ECK WORLDWIDE EMERGING MARKETS FUND vs S&P 500
Van Eck Worldwide
Emerging Markets Fund S&P 500
--------------------- -------
12/27/95 $10,000 $10,000
$ 9,940 $ 9,993
$ 9,900 $10,023
$10,060 $10,101
$10,330 $10,110
$10,390 $10,052
$10,530 $10,035
$10,470 $10,064
$10,410 $ 9,917
$10,400 $ 9,739
$10,510 $ 9,807
$10,550 $ 9,793
1/15/96 $10,690 $ 9,761
$10,600 $ 9,901
$10,530 $ 9,867
$10,480 $ 9,898
$10,660 $ 9,956
$10,690 $ 9,981
$10,570 $ 9,972
$10,600 $10,088
$10,600 $10,041
$10,600 $10,115
$10,610 $10,158
$10,670 $10,254
1/31/96 $10,820 $10,350
$10,790 $10,389
$10,970 $10,347
$10,950 $10,438
$10,910 $10,517
$10,880 $10,576
$11,000 $10,676
$10,840 $10,681
$10,770 $10,764
$10,830 $10,748
2/14/96 $10,910 $10,668
$10,920 $10,599
$10,870 $10,544
$10,790 $10,425
$10,850 $10,546
$10,790 $10,721
$10,810 $10,725
$10,740 $10,585
$10,690 $10,532
$10,550 $10,492
2/29/96 $10,350 $10,421
$10,480 $10,486
$10,440 $10,590
$10,420 $10,671
$10,330 $10,610
$10,200 $10,637
$10,040 $10,309
$ 9,910 $10,415
$ 9,960 $10,367
$ 9,900 $10,391
3/15/96 $ 9,970 $10,429
$10,020 $10,438
$10,100 $10,620
$10,190 $10,605
$10,310 $10,577
$10,310 $10,564
$10,430 $10,587
$10,440 $10,578
$10,410 $10,626
$10,300 $10,559
3/29/96 $10,310 $10,560
$10,320 $10,504
$10,350 $10,638
$10,450 $10,663
$10,500 $10,673
$10,490 $10,673
$10,370 $10,483
$10,420 $10,450
$10,490 $10,309
$10,500 $10,271
4/15/96 $10,620 $10,361
$10,750 $10,455
$10,730 $10,496
$10,740 $10,441
$10,730 $10,473
$10,760 $10,497
$10,780 $10,543
$10,720 $10,603
$10,900 $10,580
$10,870 $10,624
$10,880 $10,633
$10,900 $10,645
4/30/96 $10,950 $10,645
-----------------------------
Total Return Since Inception*
9.5%
-----------------------------
Past Performance is not indicative of future results.
*Performance is net of the Fund's expenses only, which were fully reimbursed by
the Advisor.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
COUNTRY/INDUSTRY NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
- --------------------------------------------------------------------------------
BRAZIL - 23.5%
Electric Utilities - 12.3%
1,900 Cemig S.A. (ADR) $ 47,737
Telecommunications - 11.2%
800 Telecomunicacoes
Brasileiras S.A. (ADR) 43,300
--------
91,037
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CHILE- 11.6%
Electric Utilities - 5.7%
400 Chilectra S.A. (ADR) 22,000
Financial Services - 5.9%
1,000 A.F.P. Provida S.A. (ADR) 22,875
--------
44,875
--------
CHINA - 0.4%
Auto Parts - 0.4%
180 China Yuchai International Ltd. 1,733
--------
COLOMBIA- 4.1%
Banks - 4.1%
800 Banco Industria
Colombiano S.A. (ADR) 15,700
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HONG KONG- 5.9%
Auto & Trucks - 5.9%
70,000 Qingling Motor Co. 22,849
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INDONESIA- 19.2%
Distilling/Tobacco - 10.0%
3,500 HM Sampoerna "F" 38,704
Holding Co. -
Diversified - 9.2%
25,000 PT Bimantara Citra "F"+ 35,699
--------
74,403
--------
ISRAEL - 3.2%
Holding Co. -
Diversified - 3.2%
650 Koor Industries Ltd. (ADR) 12,188
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MALAYSIA - 1.8%
Banks - 1.8%
1,000 Commerce Asset-Holding Berhad 6,817
--------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
INVESTMENT PORTFOLIO (CONTINUED)
COUNTRY/INDUSTRY NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
- --------------------------------------------------------------------------------
MEXICO - 7.4%
Banks - 7.4%
3,200 Grupo Financiero
Bancomer S.A. (GDR)+ $ 28,800
--------
PERU - 7.7%
Financial Services - 7.7%
1,763 Credicorp Ltd. 29,963
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SOUTH KOREA - 11.9%
Electric Utilities - 6.9%
961 Korea Electric Power Corp. (ADR) 26,668
Telecommunications - 5.0%
45 Korea Mobile Telecommunications
Corp. Warrant (Expires 12/7/99)+ 19,164
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45,832
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TAIWAN - 3.3%
Miscellaneous - 3.3%
200 Taiwan Weighted Index Warrant
(Expires 3/12/98)+ 12,730
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TOTAL INVESTMENTS - 100% (COST $348,003) $386,927
========
(a) Unless otherwise indicated, securities owned are shares of common stock
"F" - Foreign registry
+ Non-income producing security
GLOSSARY:
ADR - American depository receipt
GDR- Global depository receipt
SUMMARY OF INVESTMENTS BY INDUSTRY
- ----------------------------------
Auto & Trucks 5.9%
Auto Parts 0.4%
Banks 13.3%
Distilling/Tobacco 10.0%
Electric Utilities 24.9%
Financial Services 13.6%
Holding Co. - Diversified 12.4%
Miscellaneous 3.3%
Telecommunications 16.2%
------
100.0%
======
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
Assets:
Investments at value (identified cost,
$348,003) (Note 1) $386,927
Cash 75,830
Cash- initial margin for equity swaps 73,317
Due from broker (Note 4) 2,983
Receivables:
Capital shares sold 50,000
Dividends 2,608
Receivable from Advisor 8,767
Securities sold 2,878
Deferred organization expenses 6,978
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Total assets 610,288
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Liabilities:
Due to broker (Note 4) 4,766
Accounts payable 8,258
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Total liabilities 13,024
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Net Assets (Equivalent to $10.95 per share on
54,566 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $597,264
========
Net assets consist of:
Aggregate paid in capital $550,000
Unrealized apppreciation of investments, equity swaps
and foreign currency 37,458
Undistributed net investment income 3,433
Undistributed realized gains 6,373
--------
$597,264
========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM DECEMBER 21, 1995 (COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
INCOME: (NOTE 1)
Dividend Income (net of foreign
taxes withheld of $650) $ 3,557
EXPENSES:
Management (Note 2) $ 1,867
Professional 6,822
Reports to shareholders 932
Amortization of organizational expenses (Note 1) 538
Custodian 497
Registration fees 172
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Total expenses 10,828
Expenses assumed by the Advisor and
reduced by a custodian fee arrangement (Note 2) (10,828)
--------
Net expenses 0
--------
Net investment income 3,557
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Realized gain from security transactions
(excluding short-term securities):
Proceeds from sales 175,117
Cost of securities sold 168,806
--------
Realized gain 6,311
Realized loss from foreign currency transactions (62)
Unrealized appreciation of foreign currency
receivables and payables:
Beginning of period: 0
End of period: 317
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Change in unrealized appreciation of foreign 317
currency receivables and payables
Unrealized appreciation of investments and swaps:
Beginning of period 0
End of period 37,141
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Change in unrealized appreciation 37,141
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 47,264
========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 21, 1995 (COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 3,557
Realized gain from security transactions 6,311
Realized loss from foreign currency
transactions (62)
Change in unrealized appreciation of foreign
currency receivables and payables 317
Change in unrealized appreciation
of investments and swaps 37,141
--------
Increase in net assets
resulting from operations 47,264
--------
Capital share transactions*:
Net proceeds from sales of shares 550,000
Cost of shares reacquired --
--------
Increase in net assets resulting
from capital share transactions 550,000
--------
Total increase in net assets 597,264
NET ASSETS:
Beginning of period --
--------
End of period (including undistibuted net
investment income of $3,433) $597,264
========
*SHARES OF BENEFICIAL INTEREST
ISSUED AND REDEEMED:
Shares sold 54,566
Shares reacquired --
--------
Net increase 54,566
========
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FOR THE PERIOD
DECEMBER 21, 1995(A)
TO
APRIL 30, 1996
--------------
Net Asset Value, Beginning of Period $10.00
------
Income From Investment Operations:
Net Investment Income (b) 0.07
Net Gains on Securities
(both realized and unrealized) 0.88
------
Total From Investment Operations 0.95
------
Net Asset Value, End of Period $10.95
======
Total Return (c) 9.50%
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) $ 597
Ratio of Expenses to Average Net Assets (d) 0.00%
Ratio of Net Income to Average Net Assets (e) 1.89%
Portfolio Turnover Rate 45.89%
Average Commission Rate Paid $0.0124
- --------------------------------------------
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period and a redemption on the last day of
the period. Total return for the period ended April 30, 1996 was not annualized.
(d) Had the Advisor not reimbursed expenses and had there been no custodian fee
arrangement, the expense ratio for the period December 21, 1995 (commencement of
operations) to April 30, 1996 would have been 2.06%.
(e) Annualized.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Emerging Markets Fund series, a
diversified fund (the "Fund"), of the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles. The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of management's estimates, and
the actual results could differ.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. The portion of realized and unrealized gains and losses on
investments that result from fluctuations in foreign currency exchange rates is
not separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on foreign currency denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
D. Dividends and Distributions-Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for foreign currency transactions. The
effect of these differences for the year ended April 30,1996 decreased
undistributed net investment income by $62, increased undistributed realized
gains by $62.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned.
F. Deferred organizational costs will be amortized over a period not to exceed
five years.
NOTE 2-Van Eck Associates Corporation earns fees for investment management and
advisory services. The fee is based on an annual rate of 1% of the average daily
net assets, which includes the fee paid to the Advisor for accounting and
administrative services. For the period ended April 30, 1996, Van Eck Associates
Corporation agreed to waive its management fees and assume all expenses of the
Fund. Certain of the officers and trustees of the Trust are officers, directors
or stockholders of Van Eck Associates Corporation and Van Eck Securities
Corporation. As of April 30, 1996 Van Eck Associates Corporation owned 91.6% of
the outstanding shares of the Fund.
The Fund has a fee arrangement, based on cash balances left on deposit with the
custodian, which reduces the Fund's operating expenses. For the period ended
April 30, 1996, the Fund's expenses were reduced by $194 under this arrangement.
NOTE 3-Purchases of securities other than short-term obligations aggregated
$516,809 for the period ended April 30, 1996. For federal income tax purposes
the identified cost of investments owned at April 30, 1996 was $348,003. As of
April 30, 1996 net unrealized appreciation for federal income tax purposes
aggregated $38,924 of which $44,778 related to appreciated securities and $5,854
related to depreciated securities.
NOTE 4-The Fund entered into the following equity swaps to gain investment
exposure to the relevant market of the underlying securities. A swap is an
agreement that obligates two parties to exchange cash flows at specified
intervals. In the case of the following swaps the Fund is obligated to pay the
counterparty on trade date an amount based upon the value of the underlying
instrument and, at termination date, final payment is settled based on the value
of the underlying securities on trade date versus the value on termination date
plus accrued dividends.
Risks may arise as a result of the failure of the other party to the contract to
comply with the terms of the swap contract. The losses incurred on the following
swaps are limited to the payments made on the purchase date by the Fund.
Therefore, the Fund considers the creditworthiness of each counterparty to a
swap contract in evaluating potential credit risk. Additionally, risks may arise
from unanticipated movements in the value of the swaps relative to the
underlying securities.
The Fund records a net receivable or payable daily, based on the change on the
change in the value of the underlying securities. The net receivable or payable
for financial statement purposes is shown as due to and from broker.
<PAGE>
WORLDWIDE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
At April 30, 1996 the Fund had the following outstanding swaps with a single
counterparty (stated in US dollars):
<TABLE>
<CAPTION>
UNREALIZED
UNDERLYING NUMBER OF NOTIONAL TERMINATION APPRECIATION
SECURITY SHARES AMOUNT DATE (DEPRECIATION)
-------- ------ ------ ---- --------------
APPRECIATED SWAP:
<S> <C> <C> <C> <C>
Siam Commercial Bank 2,500 $24,992 January 2, 1998 $ 2,983
=======
DEPRECIATED SWAPS:
Dongbu Fire Insurance 500 $21,033 April 26, 1997 $(2,143)
Land and House PCL 1,700 $24,531 January 2, 1997 $(1,479)
National Finance &
Securities PCL 5,000 $23,794 January 2, 1997 $(1,144)
-------
Total depreciation $(4,766)
=======
</TABLE>
NOTE 5-The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and considerations not typically
associated with investing in U.S. issuers. These risks include devaluation of
currencies, less reliable information about issuers, different securities
transactions clearance and settlement practices, and future adverse political
and economic developments. These risks are heightened for investments in
emerging market countries. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. issuers.
NOTE 6-The Fund invests in warrants whose values are linked to indices or
underlying instruments. The Fund uses these warrants to gain exposure to markets
that might be difficult to invest in through conventional securities. Warrants
may be more volatile than their linked indices or underlying instruments.
Potential losses are limited to the amount of the original investment.
NOTE 7-An income dividend of $.06 a share was paid on May 30, 1996 to
shareholders of record on May 29, 1996, with a reinvestment date of May 31,
1996.
<PAGE>
COOPERS & LYBRAND
COOPERS & LYBRAND L.L.P.
a professional services firm
1301 Avenue of the Americas
New York, New York
10019-6013
telephone (212) 259-1000
facsimile (212) 259-1301
REPORT OF INDEPENDENT ACCOUNTANTS
-----------------------
To the Shareholders and Board of Trustees of
Van Eck Worldwide Insurance Trust:
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of the Worldwide Emerging Markets Fund (the "Fund")
(one of the series constituting the Van Eck Worldwide Insurance Trust) as of
April 30, 1996, and the related statement of operations, the statement of
changes in net assets and the financial highlights for the period from December
21, 1995 (commencement of operations) to April 30, 1996. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Worldwide Emerging Markets Fund series of the Van Eck Worldwide Insurance Trust
as of April 30, 1996, the results of its operations, the changes in its net
assets and the financial highlights for the period from December 21, 1995
(commencement of operations) to April 30, 1996, in conformity with generally
accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
June 21, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland.
